How can I increase my credit limit? When you get approved for a Credit card, the issuer will assign you with a credit limit based on your income, credit score and other financial obligations. Some credit card issuers will offer you high credit card limits once you have a good relationship with them, while some won’t. This means you will have to request a high credit increase when you need it. However, getting an increase on your credit limit can be harmful or helpful, depending on your financial stability.
If you can pay your bills on time, increasing your credit card limit can help your credit scores and give you more flexibility. But, if you have an overspending habit, a higher credit card limit can worsen your situation. The reason is that, increasing your credit limit, will give you more spending power.
However, you need to know that increasing your credit limit will help you keep your credit utilization rate low. And this is a good factor that can make up a large part on your credit score. Requesting a credit card increase is very easy. So follow this article to the end to check how to increase your limit, benefits and why you should.
Why Should I Increase my Credit Limit?
If you manage your credit well and do not spend more than you have, an increase in your credit limit is a good thing. Having a higher credit limit is one of the best and fastest way to increase your spending power.
Having available credit at hand means you will be able to make large purchases or numerous smaller once. Increasing your card limit is much easier than getting a new credit card. As since you only have one account, you will be able to manage and keep track of it.
Benefits of Increasing Credit Card Limit
There are lots of benefits that come with getting your hands on higher credit limit. However, below are some of the benefits of increasing your credit card limit;
- Improve your credit score
- Improve your credit utilization
- You will have more purchasing power
- It will help you improve borrowing terms in nearest future
The above listed are some of the benefits that comes with increasing your credit card today. If you know it is the right choice for you. You can increase credit limit to day and enjoy more benefits,
What to Consider When You Want to Increase Your Credit Card Limit
Although, it is very tempting to increase your credit line, there are some things you have to consider. So you won’t end up harming your credit score in the process
- Make sure you can make payment and afford the new credit fees
- Be very prepared for the consequences that comes with it
- Respond to your lifestyle changes
- The credit card limit increase can initiate a hard inquiry on your credit report. This can knock off your score.
Once you have considered all the important factors that can affect your credit positively and negatively. Then you can choose to increase you credit limit. Make sure you consider everything in other not to harm your credit score in the process.
How to Increase Your Credit Limit
Just like I have mentioned above, requesting an increase is very easy and simple. In fact, there are many ways to increase your credit card limit. However, below are some of the easiest ways to increase your limit;
Make a Request Online Through Your Bank Account or Credit Account
lots of credit card issuers allows cardholders to ask for a limit increase online. You can sign into your account online and find option with limit increase or line increase. This will lead you to provide your income information which the leader will use to check if the increase is the best for you. You will also have to share updated information about your housing expenses and income,
Call Your Card Issuer Customer Service Number
You can call the number on your credit card and ask the representative whether you are eligible for a high credit limit. Just like the online process, you will have to provide information about your financial life.
Find Automatic Increases
Some credit card companies give cardholders automatic increase when they have been using the card for a while or responsibly.
However, if you don’t want to make use of these above process. You can apply for a new card if your credit is in good shape and you make payments on time. Even if the limit is higher than the current one, it still increase your available credit overall.